New ISA Regulations 2008
New ISA Regulations 2008
For new ISA regulations, 2008 is a good year for investors, because the ISA system has been simplified in order to make it easier to benefit from tax-free savings investments and encourage more people to take advantage of their tax-free allowance.
The new ISA regulations for the 2008/2009 tax year mean that there are now only two types of ISAs to choose from – a Stocks and Shares ISA and a Cash ISA. The pre-existing options have been reclassified as follows:
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PEPs (Personal Equity Plans), Mini Stocks and Shares ISAs, and the stocks and shares component of a Maxi ISA have now been reclassified as a Stocks and Shares ISA.
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TOISAs (Tessa Only ISAs), the cash component of a Maxi ISA, and Cash Mini ISAs have now all been reclassified as a Cash ISA.
Other changes in the new ISA regulations for 2008 are as follows:
- Maximum total investment now £7,200 (up from £7,000)
- £7,200 can be invested in a Stocks and Shares ISA or
- £3,600 can be invested in a Cash ISA (up from £3,000) and the remainder in Stocks and Shares if you wish
- ISAs are now available indefinitely (they were initially guaranteed by the Government for ten years until 2007/2008)
- You can now transfer your Cash ISA into a Stocks and Shares ISA
- You still cannot transfer a Stocks and Shares ISA into a Cash ISA
- Money held in Child Trust Funds can be moved into an ISA when the child is 18 years old
To see how the new ISA regulations, 2008/2009, can benefit you, compare ISA rates and see how much more you could earn in interest by being able to invest more in a Cash ISA, a Stocks and Shares ISA, or both. Use our free online comparison service to compare the market and find the best place to make your money grow with tax-free savings.
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